Banking News

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With the current economic environment asking savers far more questions than it gives answers, it is good to know that there are alternatives available. We take a look at one such alternative that is proving particularly popular as savers face the harsh reality that the more traditional fixed rate savings products are failing to meet their needs. more

Millions of savers are facing the harsh realisty that there is little hope of change to interest and savings rates in the coming years. However, those with Cash ISAs do have one further option to consider – the ISA transfer. We take a closer look at why this is becoming a rising trend as well as what this could mean for those looking for the potential to improve the returns from their capital. more

With so many savers joining income investors in the hunt for high yields, being able to quickly understand and compare the numerous options available has become even more important. We therefore compare two of our most popular income investments to help understand what is driving their popularity and why they might meet your income needs. more

Make this Budget an ISA Budget for savers say experts

17 April 2009 / by Rebecca Sargent

As the 2009 Budget approaches, the Chancellor is being urged to remember savers by the Tax Incentivised Savings Association (TISA).

The trade body wants Alistair Darling to take the first steps towards creating a National Savings Strategy, claiming that although there are incentivised saving schemes already in place, they do not allow individuals enough room to save for life.

Commenting, TISA director general Tony Vine-Lott said: "The reality of the credit crunch is hitting home and more and more people are recognising the importance of saving or paying off debt.

"The Chancellor has the ideal opportunity to build on this momentum and encourage people to save for their long term financial security.

"But in order to achieve this we need a holistic savings framework that encourages regular saving and can reflect the different financial needs of an individual throughout their life."

According to TISA, ISAs are, "an excellent example of a modern day savings vehicle," but improvements are needed to make them better for the nations savers.

Improvements suggested by TISA include the introduction of a workplace ISA, which would allow employer contributions, the decision for Child Trust Funds to become ISAs on maturity, and the ability to transfer 25 per cent of tax free pension drawdown into an ISA, in addition to the annual ISA subscription limit.

Mr Vine-Lott adds: "Taking these steps would be far more beneficial than merely raising the ISA annual allowance.

"They would make people think carefully about the importance of committing to savings on a life long basis.

"Similarly I would like to see a commitment from the Chancellor to make ISAs the savings mainstay of the future," he concluded.